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Cj7

There is some confusion as to what you have. The 205 is a Transfer Case not a Transmission to the best of my knowledge. Short rear drive lines are a common problem in a CJ with transplants. The SBC will fit in the engine bay OK but what counts then is the tranny and x-case. In order to help we need to know what you really have and pictures go a long way.
 
Sounds like somebody transplanted a fullsize 4x4 drive train. The 205 is a HD iron T case for 3/4 ton up trucks. I cant recall how long the DS is in a CJ5 but their short as well. 16", I dont know. Best bet is to keep it as unlifted as possible and, rotate the diff pointing at the T case and get a double cardan D shaft. I have seen guys cut off the rear body section,mount fab up a frame extension and relocate the springs and diff back 6" or so but its all up to your skill and $$ level.
 
You could replace the 205 with a jeep Dana 300 and gain a few inches.
My 350/350/Dana 300 combo has a rear shaft that is 22" long.
If your shaft is really at 45* I would think the joints would be binding up.
Do you have any pics of the jeep and rear shaft you could share.
 
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as stated in the above posts,you can keep it low to lower the driveshaft angle,you can use a shorter jeep Transfer Case or you can extend the frame to move the rearend back..Any of these solutions will fix the problem.It just depends on how you want to attack the problem.The 205 Transfer Case is one of the most heavy duty that you can get so personally I would keep it and move the axle back..Here is one of my CJ7 's with the axle moved back..It has a 350/350/208 and 1 ton axles...
 
You might be able to move the engine forward a few inches, since the 350 is shorter than the AMC 258 i6 / 4.2l .That could give about 4" of space.
 
Through out all of this the only problem mentioned is that the drive shaft is short. Having a short drive shaft may not be a problem. What other problems are you having due to the short drive shaft, or are you concern because you have never seen a drive shaft that short? I have a stock CJ7 with a GM Turbo 400 and QuadraTrac , my drive shaft is short, can't say that I have measured it though, but I do not have any pronlems. Again, what is the real problem besides the lenght? Rod
 

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